12:01 27 April 2013
Tesco, Britain’s biggest supermarket will launch a pension annuity comparison service to tap into UK’s lucrative retirement market. Each year, more than 400,000 retirees buy annuities to get regular annual income for the rest of their lives.
The service will be an extension of Tesco Compare website which scans cost of motoring and building insurance as well as energy deals and banking products.
Tesco’s new service is expected to help retirees find the best annuity available to them. Currently, there are very few people who are shopping around when buying this financial product.
Instead of looking around and comparing rates, most people simply sign up with their current provider. As a result, they lose significant amount of money that could afford them with more comfortable retirement.
Tom McPhail of Hargreaves Lansdown said that shopping around should be the default option.
He told the Telegraph: "It is vital that everyone who can, makes sure they benefit from an enhanced annuity, as well as considering inflation proofing and death benefits for their dependants. The more high profile participants there are in the shopping around market, the more likely it is that this will happen."
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